hourly cost of doing business

Discussion in 'Lawn Mowing' started by grassmasterswilson, Mar 27, 2012.

  1. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,469

    I'm getting more calls from HOA's and commercial properties this year. I hate to say no to business, but i'm willing to take a look and submit a bid. I haven't been very successfull and think that either my estimated cost of doing business is too high or my estimated time on the job. I'm trying to project my cost of running with additional help and equipment. Hopeing you guys might help.

    So on commercial properties I'm figuring 2 hustler super z's, 2 trimmers, 2 blowers, truck, trailer, and misc hand tools. My estimated cost on that is coming in at $28 per hour.

    On labor I'm figureing myself at $30 and 2 helpers at $13 each. So labor is at $56 per hour.

    My total breakeven rate is $84. I then add in a small percentage for additional overhead and then a profit percentage.

    How in line am I? I think my estimated hours on some of the equipment may be off. If I run 2 mowers I will get more hours and the cost should drop a little. Just wondering if I'm in line or not.
     
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Your missing a lot of expenses in your figuring ,gas,insurance ,back office,taxes.
     
  3. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,469

    All that is factored in. gas, insurance, repairs, oil, filters, etc.

    I used a spreadsheet form I bought online from sean adams. i'm just curious if someone running a similar size crew and similar equipment is close to my numbers. I'm trying to project. I know the numbers down to the penny for me running solo with 1 ztr, 1 trimmer, 1 blower.
     
  4. lawnworker

    lawnworker LawnSite Senior Member
    Posts: 899

    Your labor for yourself seems low and your equipment seems high. Keep in mind that the equipment life is at least four years. You a factoring enough to pay for it in one or two years. Still, I thing your rates or where they need to be. Just need to adjust your ratios around.

    I believe that 64 per man hour should be the goal for everyone on your payrole
     
  5. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Point. Hour many hours a week are you basing that on?
     
  6. 64 per man hour...you would be out of business down here
    Posted via Mobile Device
     
  7. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,743

    I had mine down to $57.00 per man per hour to do business. And at that rate it was just barely comfortable to do business. Really would like $75 or so if I could but you got guys operating for $25 and hour so I can't be picky now.
     
  8. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 12,963

    Forget all the estimating if that equipment sits in the shed how much do you make. To get into the biddiing you need to be around $30/hr.
     
  9. lawnworker

    lawnworker LawnSite Senior Member
    Posts: 899

    Basing the equipment depreciation? roughly 40 at 32 weeks use.
     
  10. lawnworker

    lawnworker LawnSite Senior Member
    Posts: 899

    You are not going to make it with these numbers. You would be better off working for 15.00 an hour at a stable job with benefits. However if the economy is so bad, finding that 15.00 an hour job is probably tough
     

Share This Page